Minimum Amount Due: The Debt Trap That Can Ruin Your Life

• Paying only the Minimum Amount Due on credit cards can lead to a significant debt trap due to high interest rates (30-45% annually).
• While it prevents late payment penalties and doesn't immediately affect your credit report, interest accrues on the remaining balance, increasing your debt burden.
• High credit utilization (above 30% of your limit) combined with minimum payments can lower your CIBIL score, impacting future loan approvals.
• Experts advise paying the full bill or as much as possible above the minimum to avoid accumulating interest and long-term debt.
• Maintain credit utilization below 30% and understand interest charges to protect your financial health and credit score.